Amazon announced on Monday that it will be cutting over 180 jobs in its Amazon Games division as part of a restructuring effort to refocus its resources on Prime Gaming. The company will be shutting down its Game Growth and Crown Channel initiatives and will concentrate on upcoming launches such as “Throne and Liberty” and “Blue Protocol,” as well as future projects like “Tomb Raider” and “The Lord of the Rings” games.
Christoph Hartmann, vice president of Amazon Games, expressed that it was a difficult decision and the impact will be felt widely, but it was necessary for the future of the business. The company has been in cost-cutting mode over the past year amid high interest rates and inflation, resulting in the largest layoffs in its history, cutting 27,000 jobs since last fall. However, the company’s revenue has seen a 13% increase to $143.1 billion in the third quarter, and net income has more than tripled to $9.9 billion from $2.9 billion a year earlier.
After evaluating the Amazon Games business, the company concluded that it needed to direct its efforts and resources toward delivering great games to players now and in the future. This decision aligns with CEO Andy Jassy’s efforts to trim expenses across various units of the company.
The news comes less than a day ago after it was reported Annie Palmer from CNBC PRO.